2008-07-18 22:58:07 -

- Fitch Ratings assigns a rating of 'AAA/F1+' to the $65,500,000 Elsinore Valley Municipal Water District Variable Rate Certificates of Participation, Series 2008A (the COPs). The long-term 'AAA' rating is based jointly on the long-term 'A+' rating assigned by Fitch to Elsinore Valley Municipal Water District COPs (see press release dated July 18, 2008 available on www.fitchratings.com) and the support

provided by an irrevocable, direct-pay letter of credit (LOC) issued by Dexia Credit Local, acting through its New York Branch, rated 'AA+/F1+', securing the COPs. The short-term 'F1+' rating is based solely on the LOC.

The long-term 'AAA' rating is based on Fitch's methodology which considers the probability of the failure of both a rated obligor and a bank LOC provider. The methodology results in a rating that is up to two notches higher than the stronger of the two credits if the following conditions are met: (1) both entities have a rating of 'A' or higher; (2) the transaction is structured such that payments from both the municipal issuer and the bank are in the flow of funds and both entities would have to fail to perform before the COPs defaulted; and (3) the credit of the bank and the rated obligor have a no more than a medium degree of correlation. Fitch has determined a low degree of correlation which results in a rating of 'AAA/F1+' for the COPS. If either underlying rating on the COPs or the rating of Dexia Credit Local were to be downgraded to 'A-' or lower, the joint probability methodology would no longer be applicable and the long-term rating would then reflect the higher of the two ratings.

The bank is obligated to make payments of principal, interest and purchase price when due. The rating on the COPs will expire upon the earliest of: July 31, 2013, the expiration date of the LOC, unless extended; any prior termination of the LOC; or defeasance of the COPs. The LOC provides full coverage of principal plus an amount equal to 49 days of interest computed at a maximum rate of 12%, based on a year of 365 days, and purchase price for tendered COPs. The Series 2008A COPs are expected to be available for delivery on or about July 31, 2008. The remarketing agent for the COPs is Stone & Youngberg LLC.

The COPs will bear interest in a weekly rate mode, but may be converted to a daily rate, extended rate or fixed rate mode. While COPs bear interest in the weekly rate mode, interest payments are paid on the first business day of each calendar month, commencing September 2, 2008 and bondholders have the option to tender their COPs on any business day, with the requisite prior notice. The COPs are subject to mandatory tender on (1) conversion of the interest rate mode, (2) on the day next succeeding the last day of each extended rate mode period, and (3) the expiration, termination or substitution of the LOC which includes the Trustee's receipt of an Event of Default Notice under the LOC Reimbursement Agreement directing the Trustee to cause a mandatory tender of the COPs.

Optional and mandatory redemption provisions also apply to the COPs.

The COPs are being issued to prepay and current refund in full the Elsinore Valley Municipal Water District Variable Rate Certificates of Participation Series 200A.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

Fitch Ratings
Linda Friedman, 212-908-0727, New York
(Series 2008A COPs)
Alan Gibson, 415-732-7577, San Francisco
(Elsinore Valley Municipal Water District)
or
Media Relations:
Sandro Scenga, 212-908-0278, New York